Lethargic summer markets tend to instil a sense of false security. Stocks and property are near all-time highs, interest rates are at 72 year lows and most investors feel richer than ever. Central banks signal strong economies with indications of higher interest rates and tapering of their balance sheets.
Central Bank Chief Beheaded
As I discussed last week’s article about the Fed, we mus... read more
Many investors pigeon-hole themselves as “inflationists” or “deflationists”, where an inflationist is someone who expects more inflation over the years ahead and a deflationist is someone who expects deflation. I am grudgingly in the inflation camp, because the overall case for more inflation is strong.
I use the word “grudgingly” in the above sentence for two reasons. First, mor... read more
Buried down deep in the Friday afternoon news dump is the not inconsequential news that Social Security is about to go bust – a lot faster than anyone had predicted earlier. Investor's Business Daily sums up the coming fiasco pretty well:
The Social Security report finds that the "trust fund" will run out of money in just 17 years. The news only gets worse from there.
The program... read more
Today the man who has become legendary for his predictions on QE, historic moves in currencies, warned King World News about a total recipe for disaster that will make people’s life savings disappear in the blink of an eye.
Egon von Greyerz continues: “Fake news and Fake assets are everywhere. Let’s start with social media which dominates major parts of the world. Facebook, for exam... read more
With the price of gold surging more than $10 and the dollar tumbling, a warning has just been issued by one of the legends in the business.
Beware July 20th & 21st
A portion of today’s note from legend Art Cashin: A Vague Warning From A Friend Sparks A Trip Down Memory Lane – A friend called out of the blue, and said “I’m told you should be very careful around July 20th and 21st.... read more
Investors should have used gold’s month-long pullback, culminating in a four-month low as a buying opportunity, according to one major precious metals portfolio manager.
John Hathaway, senior portfolio manager at Tocqueville Asset Management, was fairly critical of positive sentiment surrounding further U.S. economic growth, which has led to complacency in financial markets, resulting over... read more
One week ago, Illinois passed its three year-overdue budget in hopes of avoiding a downgrade to junk status, however in an unexpected twist, Moody's said that it may still downgrade the near-insolvent state [4], regardless of the so-called budget "deal." In fact, a downgrade of Illinois may come at any moment, making it the first U.S. state whose bond ratings tip into junk, although as of yeste... read more
An imminent economic crisis the likes of which this generation has never experienced is coming. However, the conditions under which the next bubble will burst will surprise even the most astute observers of economy, culture, and politics. The higher education bubble (one-sixth of the U.S. economy) will likely burst with the force of all previous catastrophes combined—a shock wave so sudden, s... read more
Gold held steady on Wednesday as investors awaited testimony from U.S. Federal Reserve Chair Janet Yellen and central bank officials expressed caution about further interest rate hikes.
"Gold's near-term direction will now be at the mercy of whether we get a hawkish Yellen on the Hill," said Jeffrey Halley, senior market analyst at OANDA.
Yellen is set to give her semi-annual monetary polic... read more
Today the man who has become legendary for his predictions on QE, historic moves in currencies, spoke with King World News about the bust that will change the world as central banks will be totally powerless to stop the biggest financial crisis in history.
Egon von Greyerz: “Lethargic summer markets tend to instill a sense of false security. Stocks and property are near all-time highs,... read more
